US Dollar demand notable again and ECB in focus
Thursday 25 October 2018
There's still lots going on out there to spook markets and create a general risk-off sentiment but we've seen some decent demand in the dips for the Greenback as the best of a very average bunch and some risk appettite returning this morning. Markets also focusing on today's European Central Banbk meeting where interest rates are expected to be left on hold still but as always there'll be scrutiny of any change in rhetoric for future policy clues.
GBPUSD fell further yesterday on the USD deand/Brexit-May uncertainty to post fresh recent lows of 1.2867. We've been back up to 1.2920 this morning but sellers were poised again with more interest now at 1.2940,1.2960 then 1.2980 and 1.3000 again.Immediate demand now around 1.2880 and 1.2860, 1.2830 and 1.2800. I remain a GBP rally seller and the strategy continues to work well.
EURGBP has been tightly bound still with pressure on the Euro once again cancelling out the weaker GBP tones a as we wait on the ECB interest rate policy meeting today. Sellers still poised between 0.8850-60 then larger at 0.8880 and 0.89002. Immediate bids/support at 0.8820 again then larger at 0.8800 and 0.8780-85.
EURUSD has fallen further to test 1.1380 support before rallying but then capping at 1.1420. Soggy German IFO data out earlier this morning has not helped the the Euro's cause and recent data will give Draghi & Co plenty to think about at today's ECB meeting.Bids/support still at 1.1380 then 1.1360, 1.1330 and 1.1300 where barrier option interest will provide decent support. Sellers poised now at 1.1420 then 1.1450, 1.1480-85, 1.1500, 1.1530 and 1.1550-60 still.
USDJPY had another look below 112.00 yesterday, this time testing its own support lines at 111.80-85 but once again found support and has rallied to 112.36 on the general Greenback grabbing and a little risk-on Yen supply this morningh.Sell interest at 112.50 again then larger between 112.80-113.00 still. I remain a rally seller for the moment. USDCHF has remained underpinned above 0.9950 but rallies also capped by some CHF demand again and further EURCHF selling down to test 1.1350 before rallying. More bids at 1.1330 and 1.1300 with sellers still at 1.1400, 1.1430 and 1.1450. USDCHF bids now at 0.9950 then 0.9930 then 0.9900 still with sell into 1.0000 once again. Happy to trade both sides of the price action at the moment.
AUDUSD remains on the back foot but holding 0.7050 for the moment albeit not able to climb back above 0.7100 either. Demand still at 0.7045-50 then 0.7030 and 0.7000 with sellers poised still around 0.7100 then 0.7120 . USDCAD fell sharply from 1.13080 t0 1.2970 after the BOC yesterday duly hiked interest rates and added some hawkish tones. We've recovered a little a few shorts covering positions and the general USD demand but sellers remain poised around 1.3050-60 then 1.3080-00 with buyers at 1.3000, 1.2980 again then 1.2950
Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Twitter: @MSPFX and @MikePatersonFX
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